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Local Government Finance Update

29 February 2024

Proposing MP
North Dorset
Type
Written Ministerial Statement
Department
Department for Levelling Up, Housing and Communities

At a Glance

Issue Summary

The statement addresses the final Local Government Finance Settlement for England for 2024-25 and provides updates on funding and support measures for local authorities.

Action Requested

The settlement includes new funding of £600 million, an increase in Core Spending Power by up to £4.5 billion, and in-principle capitalisation directions for a small number of local authorities facing financial difficulties. These directions are subject to conditions that ensure they are only used when necessary and include measures for improvement and recovery.

Key Facts

  • The final Local Government Finance Settlement for England is worth up to £64.7 billion.
  • Core Spending Power has increased by up to £4.5 billion or 7.5% in cash terms compared to 2023-24.
  • In-principle capitalisation directions have been provided to local authorities including Birmingham, Croydon, Liverpool, Nottingham, Sandwell, Slough, Thurrock, Woking, and Plymouth Councils.
  • Conditions apply for the use of capitalisation directions to ensure they are used only in necessary circumstances and to address financial management issues.
Assessment & feedback
Summary accuracy